ICRA has left its credit ratings on eMudhra Ltd untouched following a security lapse in the Bengaluru-based company's global website certificate business, though the agency cautioned that the episode could hurt the firm's reputation, invite regulatory scrutiny and weigh on client retention.
The rating agency, in an update dated October 23, reaffirmed [ICRA]A (Stable)/[ICRA]A1 on eMudhra's Rs 35 crore of unallocated credit limits.
The trouble stemmed from faulty key generation at eight intermediate certificate authorities, the entities that vouch for website certificates. Browser makers responded by blocking these authorities, and eMudhra revoked the certificates concerned. Its board has since decided to wind down the global certificate operation and concentrate on enterprise solutions and its other trust services.
Read more: eMudhra to exit global website security certificate business after key-generation flaw
Exiting the global SSL/TLS certificate segment should have only a modest direct effect on earnings, ICRA said, since the business brings in roughly 1% of consolidated revenue.